What are tax credits and how can they help low-income families?
The Earned Income Tax Credit (EITC) provides support to low-income families, including those making the transition form welfare to work. Workers who qualify and file a federal tax return can receive a refundable tax credit. Many states offer a state credit that builds on the federal credit. Not everyone who qualifies for the credit is aware of its availability, and one of the challenges for rural communities is to maximize use of the program by eligible families.